11 October 2010

The United Arab Emirates will close a military camp near Dubai used by Canadian troops to support operations in Afghanistan, a UAE source said on Sunday, in an escalation of a dispute over landing rights.

The decision comes after the UAE failed to convince Canadian authorities to allow its two major airlines to increase flights to Canada.

"Canada kept giving excuses and playing for time," said the source, speaking on condition of anonymity.

Dubai carrier Emirates has been lobbying the Canadian government to boost its thrice-weekly direct flights to Toronto and more Canadian destinations. Etihad Airways, based in Abu Dhabi, also wants to increase flights.

Canadian carriers worry the UAE airlines would steal away connecting passengers that make their routes profitable and have lobbied the government to resist.